Economic Development Strategy
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1 Economic Development Strategy Prepared by Geografia, August 2013 Web: 1
2 1 Overview This Economic Development Strategy guides Golden Plains Shire s efforts to support local business, attract investment and grow the local economy from 2013 to The vision for the Golden Plains economy in 2017 is: A diverse, resilient economy that benefits from strong regional connections and leverages the local assets in each of our townships. Council will help realise this vision through a Whole of Council focus on three key areas: 1. Connecting the Economy 2. Facilitating Business and Investment 3. Enhancing Liveability Contents 1 Introduction The Key Challenges and Opportunities A Vision for the Golden Plains Economy Council s Role in Economic Development Connecting the Economy Facilitating Business and Employment Enhancing Liveability Initiatives The Strategy describes each of these focus areas, highlights the principles that underpin Council s economic development efforts, and provides specific actions that Council will prioritise over the next five years. 1
3 2 1 Introduction The Golden Plains Economic Development Strategy (EDS) will help guide Golden Plains Shire s efforts to support local economic development over the period 2013 to The Strategy includes a vision for the Golden Plains economy and outlines Council initiatives that will assist with achieving this vision by working with local businesses, investors, the community and other levels of government. The Strategy is the result of an extensive process of consultation, analysis and economic modelling. Details of this are provided in the Golden Plains Economic Development Strategy Background Report. This includes information about where the Golden Plains economy has come from, where it is heading, and a future vision for a more diverse and resilient local economy. The Strategy is best read in conjunction with the Background Report. Geografia and Golden Plains Shire Council would like to thank the businesses, community members, investors and government stakeholders who have helped shape this Strategy. 2
4 3 2 The Key Challenges and Opportunities The Golden Plains community is rapidly growing and generating new opportunities for employment, business growth and investment in the Shire. At the same time, population growth and regional economic vulnerabilities are creating new challenges for the local economy. These challenges and opportunities are summarised in the following tables. Details can be found in the Golden Plains Economic Development Strategy Background Report. The Key Challenges Lack of employment and education opportunities in a rapidly growing community Rapid population growth in the Shire exceeds growth in local job opportunities and services. Most of our residents commute to Geelong and Ballarat for employment, shopping and education. There is a need to create more local employment, health, education and retail opportunities for our community. Regional economic vulnerabilities The future of the regional economy is uncertain. A large proportion of our community is employed in vulnerable industries such as manufacturing in Geelong and Ballarat. There is a need to consider the resilience of our economy and community in the face of regional changes. Low levels of economic diversity Golden Plains will continue to benefit from a competitive agriculture industry and the sector will continue to require investment and support. At the same time, too much dependence on agriculture will create further vulnerabilities in our economy. Industry diversification is a future challenge for our economy. Infrastructure and service shortfalls Population growth in the Shire has outpaced the provision of key infrastructure, facilities and services. For example, poor internet connectivity has an impact on local businesses. Likewise, inadequate transport connections limit the economic opportunities available to the community. Better local and regional infrastructure will be an economic enabler. One-way connections with Geelong and Ballarat Our proximity to Geelong and Ballarat should create opportunities to service these regional centres. At the moment our economy depends on these regional cities, without realising many of the potential benefits. Creating more reciprocal connections is a key challenge. Liveability challenges Sustainable population growth will depend upon enhancing liveability. This includes more local economic opportunities (e.g. employment and retail), better transport connections, and better access to education. This is especially important as the Shire starts to compete for residential development investment with new sites in Geelong. 3
5 4 The Key Opportunities Catalytic projects Major projects proposed in the Shire will respond to many of the identified economic challenges. The projects will create local jobs, promote economic diversification and resilience, reduce leakage, and increase local skills and liveability. Together, these projects will provide a catalyst for economic development in the Shire. Potential for new industries Local assets include lower land prices, low population densities, large lots, and proximity to market and access to energy supply infrastructure. Together these assets create opportunities to develop new sectors such as wind-power and renewable energy, logistics and transport, aged-care and health services, and education. Comparative advantages in agriculture Golden Plains has competitive advantages in the agricultural sector. There are opportunities to build upon our advantages and expand into related industries. These include food processing and manufacturing, logistics, grain handling, and waste management. Opportunities related to the intensive livestock agriculture sector are particularly prominent. Strategic regional location Proximity to Geelong and Ballarat should create opportunities to service these regional centres. Developing more reciprocal connections is critical to expanding the markets of local businesses, attracting new businesses to the Shire and creating new local employment. 4
6 5 3 A Vision for the Golden Plains Economy The vision for Golden Plains in 2017 is an economy that builds upon our history of development, self-sufficiency and agricultural identity so that: Golden Plains will be a diverse, resilient economy that benefits from strong regional connections and leverages the local assets in each of our townships. Figure 1 outlines the vision for the Golden Plains economy. It shows its historical evolution, and the transition toward greater economic resilience. Figure 2 illustrates more specific aspects of the vision and recommended actions. In 2017, our economy will: Build upon its agricultural competiveness, history and identity, but at the same time enjoy a greater diversity of industries and job opportunities. Connect to the Geelong and Ballarat economies and benefit from its strategic proximity to regional centres. Golden Plains will enjoy a more reciprocal relationship with these regional economies both contributing to and drawing from these centres. Have better local job opportunities, infrastructure, secondary education opportunities, and services. These will increase liveability, and underpin sustainable population growth and retention. Be a competitive place for business. Well connected infrastructure, reduced economic leakage, a skilled workforce through better education opportunities, and responsive regulation will promote economic expansion in the Shire. Leverage the local assets in each township, to create a network of complementary centres of economic activity. 5
7 6 Figure 1: The Evolution of the Golden Plains Economy, and a Vision for the Future Economic History Current Challenges and Issues Future Economic Vision Economic self-sufficiency, with small and vibrant townships servicing agricultural areas Lack of employment and services in a rapidly growing community Improved access to local employment opportunities, secondary education facilities, local shopping and health services Economic concentration in broad-acre agriculture, and gold mining in the northwest Industry concentration in agriculture and lower levels of economic resilience A strong, competitive agricultural sector coupled with a more diverse range of local industries and jobs A more independent economy with lower levels of regional dependence Vulnerabilities in the regional economy, especially in manufacturing A resilient local economy that can absorb regional economic shocks Previously a net-exporter of commodities to regional cities and beyond One-way connections with, and dependency on, Geelong and Ballarat An economy that benefits more from proximity and connections to large markets in Ballarat and Geelong 6
8 Figure 2: Detailed Vision for the Golden Plains Economy 7
9 4 Council s Role in Economic Development Golden Plains Shire Council will contribute to local economic development in three key ways: 1. Connecting the Economy 2. Facilitating Business and Employment 3. Enhancing Liveability Broad principles to guide Council s efforts and resources in each focus area are outlined in the following pages. Specific initiatives that Council should pursue as a matter of priority over the next five years are described in Section 8. Many of the principles and initiatives encompass issues and opportunities that may not normally be associated with economic development. They extend into areas such as town planning, arts and culture, and community service provision. In this sense, the Strategy recognises that a Whole of Council approach to economic development is essential. 8
10 5 Connecting the Economy Background Local economic development is highly dependent upon access to markets, suppliers and workers. As technological changes and global exchanges continue to drive future economic growth, the strength of an economy s connections will be an increasingly important predictor of success. Enhanced connections within Golden Plains Shire, with the wider region, and with the global economy will improve access to new markets and increase business productivity. These connections include hard infrastructure such as transport, telecommunications and utilities, as well as softer connections such as personal and business networks, and information flows. The future of the Golden Plains economy is intricately linked to the Ballarat, Geelong and Greater Melbourne regions. However, the economy often suffers from weak connections within the Shire; to these regional centres; and with the wider economy. Connections that inhibit economic growth in the Shire include: Principles 1. Recognise the importance of information connectivity, and therefore telecommunications, for the future of the Golden Plains economy. 2. Recognise the significance of building personal and business networks, or soft networks, for local economic development. These connections require attention at the local regional and national levels. Prioritise connections that allow the Golden Plains economy to reciprocally participate in the regional economies of Ballarat and Geelong. 3. Consider how businesses can better leverage from existing connections, and identify what new connections are required in the Shire. 4. Look for innovative models to address connectivity gaps, such as Public-Private-Partnerships or Council commitments. Poor mobile phone network coverage in parts of the Shire Broadband availability Water and utilities access Transport, including public transport and road infrastructure Business and industry connections Connections to customers The future of the Golden Plains economy will depend on enhancing these connections, and ensuring that businesses can leverage these links. 9
11 6 Facilitating Business and Employment Background The background analysis for this Strategy has identified potential barriers to future economic growth in the Shire. Many of these barriers are naturally outside the direct control of Council. In these instances, Council s energies should be directed toward facilitating the actions of other parties to help promote development goals. Council s facilitation role in the local economy includes: Advocacy to the Victorian and Commonwealth Governments on behalf of the local community and businesses Promoting and marketing the Shire and its businesses Organising events that facilitate trade in the Shire Developing and supporting partnerships and networks Ensuring regulatory barriers to investment are minimised Building the capacity of local businesses and employees Employing labour and purchasing goods and services Principles 1. Identify and resolve planning and regulatory constraints to development and business. 2. Create precincts or focal points for key industries to encourage clustering of complementary businesses. 3. Build community and Council commitment to key industries to reduce resistance during approvals processes. 4. Support and build the capacity of local businesses in the Shire, especially home-based businesses. 5. Continue to build the identity and brand of Golden Plains for the marketing of local produce and tourism. 6. Help develop a skilled workforce that is responsive to the needs of local and regional industry. 7. Consider innovative service and funding models to encourage investment in priority services, facilities and infrastructure. 8. Incorporate deliberate consideration of employment and economic development into every day decision-making. 10
12 7 Enhancing Liveability Background The Shire s rapid population growth has been driven by housing affordability and proximity to Geelong and Ballarat. Unfortunately, the development of local facilities, services and economic opportunities has not kept pace with this growth. Without enhancing liveability and creating more opportunities for the community and businesses, long-term population and economic growth in Shire is uncertain. A decline in liveability relative to neighbouring municipalities will undermine the Shire s investment, business and housing competitiveness. This is especially significant given future land releases in close proximity to Geelong. Liveability issues in the Shire relate to access to services, local facilities, and employment opportunities. These include: High levels of economic leakage as community members leave the Shire to access services and facilities on a daily basis. Limited local education opportunities, impacting the skills and competiveness of the local workforce, and encouraging travel outside of the Shire. Limited local employment opportunities, impacting on the Shire s liveability. A lack of diverse economic and employment opportunities in the Shire, with the economy remaining centred on the agricultural sector. A more diverse employment base will increase economic resilience and the opportunities available to the community. Principles 1. Encourage enhanced economic opportunities within the Shire with a view toward increasing employment self-sufficiency. 2. Encourage a more diverse range of jobs and industries to set up in the Shire. 3. Develop local facilities and services (both government and private) that enhance local liveability. 4. Continue to build recognition of Golden Plains liveable, affordable rural lifestyle. 5. Focus on realistic, catalytic projects in small towns that can enhance both liveability and economic opportunity at a local level. 6. Recognise the benefits of creating a better fit between the skills of the local community and local jobs and industries. As the local population continues to grow, a larger population will support additional services and facilities based in the Shire. This will create opportunities to reduce economic leakage, increase liveability, and create more employment opportunities. There are significant opportunities to build upon the Shire s strategic location to attract business and investment in the context of the Ballarat and Geelong regions. 8 Initiatives 11
13 Abbreviations Executive Unit PD Planning Department WD Works Department Departmental allocations in the following table are indicative only CpS CmS Corporate Services Community Services Connecting the Economy No. Initiative Responsibility Improve transport connections, especially regional links to Geelong and Ballarat. 1.1 Develop long-term transport planning for the Shire. The planning should consider the future opportunities associated with a growing population base, future education facilities in the Shire, issues associated with an increasing number of youth, and an ageing population. Consider leveraging the activity of regional transport planning such as that developed by G Build the local community s commitment to public transport to increase its feasibility. This can involve travel behaviour change programs when new services are introduced, enhanced marketing of services and the benefits, and promoting community participation in transport planning. 1.3 Continue to advocate for the long-term reintroduction of passenger rail between Ballarat and Geelong. PD WD PD 1.4 Continue to advocate for the duplication of the Midland Highway, and upgrades to the Ballarat-Colac Road, the Bannockburn-Skipton Road and the Glenelg Highway. 1.5 Account for the impact of population and economic growth on Council infrastructure maintenance budgets in project planning stages. This should include planning for heavy transport activity associated with the growing intensive livestock agriculture sector; the ongoing transition to grain production; and population growth. PD WD 12
14 2. Improve broadband and mobile phone connectivity in the Shire. 2.1 Investigate innovative models that could be used to attract broadband investment to the Shire, prior to the installation of NBN services. This may include using the purchasing power of Council to help attract alternative telecommunications providers to the area in a way that can also deliver public services. 2.2 Investigate the feasibility of installing micro-cell or femto-cell base stations in small towns that do not currently have access to mobile services. Consider alternative models of investment in such base stations, such as a community collective. 2.3 Consider undertaking a feasibility study into Council-provided Wi-Fi in public spaces, cafes and other spaces throughout the municipality. CpS 2.4 Develop an interactive website to record and publicise data regarding telecommunication black spots and unmet demand in the Shire. Use this website, and the data collected, to advocate for investment in local infrastructure to government and the private sector. 3. Connect local businesses to local consumers, and regional markets in Geelong and Ballarat. 3.1 In partnership with local business groups, develop a more substantial welcome pack for new residents that may include free gifts and vouchers. Consider developing a Buy Golden Plains brand to help promote local custom. 3.2 Encourage businesses to participate in regional-level business and industry groups in Geelong and Ballarat to establish regional networks. 3.3 Advocate for private and government investment in the Lethbridge Airfield, to elevate the airfield to a regional level general and recreational aviation facility consistent with its existing planning provisions. 4. Connect the Shire to basic energy and water utilities. 4.1 Advocate for the installation of reticulated gas in locations that will promote the greatest economic benefit. Priority locations include existing and planned industrial areas, intensive agriculture areas, and agricultural services hubs. 4.2 Consider the impact of recent sewerage installation in Smythesdale for local population growth, and local businesses opportunities in the long-term. Consider how Council is able to help facilitate local growth following this substantial infrastructure investment. 4.3 Advocate for the extension of the Small Towns Sewerage Scheme, or similar, to townships and parts of townships that are currently unsewered. PD 13
15 No. Initiative Responsibility Continue to support and develop local business networks within the Shire. 5.1 Consider facilitating an intensive livestock agriculture industry network in Golden Plains or the region to promote the ongoing development of an industry cluster in the area. This may involve building upon existing agriculture networks in the region. The network may be long term or specific to issues such as water infrastructure, labour, skills or ancillary service shortages. 5.2 Actively support the development of the Bannockburn Chamber of Commerce and other groups of traders that have a geographic or other logical affinity. 14
16 Facilitating Business and Employment No. Initiative Responsibility Continue Council s pro-active approach to establishing a food production precinct southwest of Lethbridge. 6.1 Begin to plan, budget and advocate for the additional infrastructure required for rapid growth of the food production precinct following the expected installation of water. Additional infrastructure requirements may include roads, gas, and power. 6.2 Identify value-adding services and suppliers that relate to the food production precinct, such as waste management companies, biosecurity consultants, trucking companies and food processing businesses. Encourage these businesses to locate within the Shire by understanding the needs and incentives that may attract them. 6.3 Ensure that appropriate community consultation is always an integral part of further development of the food production industry in the Shire. WD PD CpS PD PD 6.4 Review Council s planning policies and procedures in light of developments in planning law and VCAT decisions to ensure that both investors and local communities can have maximum certainty and therefore avoid unnecessary court actions. PD 6.5 Build on Council s experiences with the Lethbridge food production precinct to PD consider similar precincts in areas with large property parcels that can cater for internal buffer zones such as the plains area to the east of Rokewood. 6.6 Work with Council s planning staff on a state-wide or national protocol that makes best use of by-products of intensive agriculture (such as chicken litter) and ensures that no jurisdiction uses poor regulatory practises as a competitive advantage. 7. Continue to advocate to State and Federal Government for investment in major projects in the Shire and the Region. 7.1 Continue to advocate to State and Federal Government for investment in major projects in the Shire and the Region. As a contingency, pursue alternative models of provision or funding that may achieve the completion of these projects. Major projects that have been identified, and are discussed in other sections of this strategy include: a. K-12 school and education facilities in Bannockburn b. Duplication of the Midland Highway c. Lethbridge Airfield investment 15
17 No. Initiative Responsibility Work with Council s planning team to enhance economic development and investment opportunities in the Shire. 8.1 Review the impact of proposed State Government changes to planning controls in PD farming and other zones for businesses sectors such as agriculture and tourism. Consider opportunities that these changes may create and run a public information campaign with landholders in these zones on the new opportunities available to them. 8.2 Review the impact of planning controls on agribusiness related uses around PD agricultural service towns such as Rokewood. Consider how the State Government planning reforms and existing regulations such as those associated with native vegetation will promote or inhibit the development of agricultural service hubs in smaller townships and communicate these findings to local businesses and communities. 8.3 Examine the economic development opportunities that may flow from a heavy vehicle bypass of the Bannockburn township. 8.4 Expand the availability of industrial zoned land within Bannockburn and work with industry to promote opportunities that arise as a result of any industrial rezoning. 8.5 Identify and facilitate appropriate investment in the employment zone in Gheringhap if the current structure planning process supports that development. 8.6 Consider the ramifications of the industrial, commercial, residential and public service provision growth planned for Ballarat West, and how this will shape economic activity including land use in the northern part of Golden Plains. 9. Build the Golden Plains brand to promote tourism and local produce. 9.1 Continue to support and promote the Golden Plains Farmers Market. Consider extending the Golden Plains brand to a regular arts, crafts and antiques market, potentially in the northwest of the Shire. 9.2 Leverage the success of the Farmers Market and local food and wine producers to develop a Golden Plains brand that can be used by local producers. Consider developing a local produce branding strategy. 9.3 Promote the Golden Plains brand and local producers at trade exhibitions and events such as the Melbourne Food and Wine Festival and Melbourne Show. 9.4 Continue to maintain and regularly update existing marketing materials, such as the Golden Plains App, and tourism maps. Consider tourist and other signage that diverts passing traffic and expenditure into towns and communities. PD PD 16
18 9.5 Cooperate with Council s Arts and Culture staff to explore opportunities for promoting cultural tourism in the Shire. This will build upon and contribute toward a Golden Plains produce brand. No. Initiative Responsibility Leverage the Shire s strategic advantages in the renewable-energy sector to position the sector as a longer-term economic driver in the Shire Engage with wind-power developers in the early stages of project planning to maximise the long-term economic benefits to the Golden Plains community. Consider how local suppliers, labour and materials can be used in project construction and operations Explore the opportunity to develop wind power on the site to provide for significant PD power requirements in the Lethbridge Food Production Precinct with intensive agriculture businesses and renewable energy operators Explore opportunities for other renewable energy technologies in the Shire. 17
19 Enhancing Liveability No. Initiative Responsibility Advocate for the development of education services as a priority economic project in the Shire Continue to work with DEECD to pursue investment in a Bannockburn K-12 school. CmS Consider an economic and social impact study into a local K-12 school to help advocate for investment. The study could articulate benefits in terms of reduced retail leakage, local skills, employment, community safety and productivity Investigate alternative school models that could provide a first step toward CmS establishing a K-12 school in Bannockburn. These may include the provision of year seven and eight at an existing primary school site in Golden Plains in partnership with a Geelong high school Explore the potential for independent schools to operate in the Shire. Consider what actions Council can take to attract such a school Examine ways to increase the supply of family day care and long day care services in the Shire as an economic enabler and employment source. CmS 11.5 In partnership with appropriate service providers, investigate the potential for further adult education or community learning opportunities in Bannockburn. Consider the potential for these services to provide training that links to the workforce requirements of local sectors such as intensive agriculture Investigate ways to promote the supply of additional childcare places in the Shire including new private providers. CmS CmS PD 11.7 Pursue the provision of secondary schooling in the northern end of the Shire PD CmS 12. Promote further development of the local health, aged and disability sectors to encourage greater local economic diversity, stimulate employment intensive industries, and promote liveability in the Shire Explore demand for future aged care and health services in Bannockburn and CmS PD Smythesdale, given their proximity to an ageing regional population in Geelong, Ballarat and Greater Melbourne, and local land affordability Consider the land requirements of the aged care and health sector and how these PD CmS can be facilitated through land supply, the planning system, and land consolidation where required. 18
20 12.3 Identify measures that can be taken to attract future aged and health care investments in the Geelong and Ballarat regions to Golden Plains. This may include reduced rates, or training programs to build a local healthcare workforce. PD CmS 19
21 No. Initiative Responsibility Consider undertaking a detailed study into the future of the aged care sector in the PD CmS Shire to explore these opportunities. Consider how the development of a strong local aged-care sector can provide the impetus for more general health, specialist and well-being services locating in the Shire in the longer-term Examine how the introduction of the National Disability Insurance Scheme will affect CmS service delivery by the Shire and employment opportunities in the Shire 13. Investigate the potential for a number of projects in small townships that will drive economic development and enhanced liveability in these communities 13.1 Plan for an events program to build upon heritage and nature-based tourism potential in the north west of the Shire. Events should align with the regular festivals and programs planned in the Ballarat Region Recognise historical elements of various townships and other elements of CmS community identity and consider how these can contribute to ongoing economic development Focus on enhancing the main street presentation and gateway treatments in PD Inverleigh to capitalise on passing traffic whilst maintaining appropriate long vehicle parking 13.4 Consider the potential for community or commercially operated accommodation in PD Rokewood, which could also service seasonal agricultural workers in the area In partnership with Council s Arts and Culture staff, plan for events around the Lethbridge and Meredith areas that leverage the area s brand associations with music festivals and wine. This may include a branded program of local music events at venues in the area (e.g. hotels, historical buildings, wineries) Explore the opportunity for Lethbridge Township to develop as an agricultural services hub that supports the future Food Production Precinct. PD 13.7 Market the equine sector around the Smythesdale area, including actively seeking businesses and clubs to locate to the area Continue to work with the Teesdale community to promote the development of commercial and community uses in the Township Zone and potential development of the local equine sector 13.9 Extend The Well facility in Smythesdale to allow it to act as a business incubator and drive economic development in the Smythesdale area PD CmS 20
22 No. Initiative Responsibility Promote the development of home-based businesses in the Shire to support a diversified economy, and create a source of local employment growth Undertake a study to investigate the home-based business sector in the Shire. This study should quantify the scale and nature of the sector, identify issues and constraints, and articulate the role of Council in assisting home-based businesses to grow Host a network of professional and service industry home-based businesses in the Shire (e.g. technology, design and business services firms), potentially with the Chamber of Commerce Develop an action plan to connect local home-based businesses to potential growth PD sectors such as intensive livestock agriculture and aged care and consider the planning issues associated with these businesses outgrowing their existing sites 15. Pursue private investment and plan for the expansion and improvement of the Shire s retail offering to help reduce retail leakage and increase liveability in the Shire Continue to work with the owners of Bannockburn Plaza to facilitate the major redevelopment of this centre Investigate the long-term demand for, and suitability of, further land being made available for commercial and retail use in or around Bannockburn given ongoing population growth. PD 15.3 Continue to support and help facilitate events that highlight the retail offering available in the Shire, and encourage local residents to shop locally. These include Christmas and Easter events organised by the Chamber of Commerce, for example. 16. Use Council procurement practises to develop the industrial and commercial base of the Shire Benchmark Council s procurement processes to ensure that they represent best CpS practise in terms of regulatory / compliance burden Review Council procurement procedures and policy to: a. Ensure that local businesses are at least considered where possible in the purchase of goods and services. b. Recognise the role that length of supply chain and other geographic factors can play in assessments of value for money. c. Recognise the industry development role that Council can play in promoting best practise in areas such as risk management and regulatory compliance in businesses that operate in the Shire. Eu CpS 21
23 No. Initiative Responsibility Continue to develop Council s supplier base by running supplier orientation CpS workshops or similar for businesses that that may be able to supply goods and services to the Shire 17. Monitor the economic health and liveability of the Shire Use future data releases to monitor the health of the Golden Plains economy, and the liveability of the Shire. Key economic and liveability indicators are described in the Background Report to this strategy, and include: Economic self-sufficiency and self-containment Industrial diversity The number of home based businesses Income and asset values Livestock and crop numbers Building approvals Unemployment 18. Incorporate consideration of economic development and employment into every day decision making 18.1 Develop decision-making templates that incorporate a conscious examination of the effects of council decisions on economic development and employment. 22
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